Many know open source. Some heard about crowdfunding. Few has used crowdfunding. Both concepts - utilizing the crowd and community have shown effective and successful result to solve problems in the world. Lately I read some blog posts and comments comparing crowdfunding to open source. Here I want to briefly share my thoughts:
Both crowdfunding and open source have helped thousands of people, which cannot be achieved alone without the support of the community / crowd. The open source approach works great, as it is utilizing the mass community's effort to benefit potentially everyone in this world, through sharing, collaboration and openness.
Crowdfunding, on the other hand, has proven to be an alternative financing model, for creative ideas on new products/services, charity, community projects, etc, which traditional financing through banks or government public funding would not cover. Even though the beneficiary would be only the fund raiser or the person who will receive the fund in the end. People, donating the money, generally feel happy because they helped others to solve a life challenge or realize their dreams. For example: unsigned musicians raise fund to create their first album with the support of their fans and music lovers. There are also crowdfunding projects, where everyone donates will benefit from it, e.g. a small community of residents raise fund to build a swimming pool for their children.
Crowdfunding has definitely helped people to solve challenges in life and to become happier. Running a crowdfunding project might be more commercial in operation than running an open source project. I believe, like open source is a real alternative to proprietary software, crowdfunding will continue to prove to be an effective alternative financing model and co-exists with banks and government funding.
Since working at Kapipal, I have seen many crowdfunding projects -- charities, hobbies, startup ideas, music albums, community efforts, gifts, etc. It is amazing to see so many innovative fundraising campaigns.
Many people use the crowdfunding approach to realize their dreams! But the power of crowdfunding does not stop here. The crowdfunding process has helped many people in a short period of time to improve their product ideas, create branding, improve marketing, as well as generate market demand intensively.
A typical example is a band raising money for their next album before production. The audience and fans get a flavor of the new album through the campaign introduction, audio or video. It helps the band to generate market interests, get early feedback from their fans, as well as increase the fans' eagerness to get the album produced by crowdfunding contribution. In a way, the band has already tested the market and created product awareness and demand before completing and shipping out their final product.
This is a very good way to exercise the lean development method for testing out the idea with the launch, learn and adapt process. Even with every social marketing promotion round, it follows the same pattern: launch-learn-adapt to understand what works, what doesn't, and how to improve the promotion to get to the next level. It is a journey of continuous learning. When the crowdfunding campaign finishes, the fundraiser not only has more experience in running a crowdfunding campaign, but surely also much more knowledge on social media marketing and lean product development.
If you want to start a crowdfunding campaign for your dream, our Kapipal Team would be happy to support you on your journey!
Recently, there have been more and more new Kapipal crowd funding campaigns started. We are so excited to see both interest in our site and our user base growing! All of us on the Kapipal Operation Team want each of the Kapipal campaigns to be successful and have a lot of happy users. We know each of you have your own story to tell and may need some help telling it. You might be wondering, what are the key success factors for a crowdfunding campaign? After observing some ongoing Kapipal fundraising campaigns, here are some thoughts from us:
This is the official blog of Kapipal. Check back often for updates on what's new at Kapipal, as well as ways to make your campaign shine! As always, we value your feedback, so please don't be shy — comments are encouraged!